QUESTION DETAIL
Related User
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At 70yrs old, is it wise to convert an IRA into a Roth IRA? What factors should I be considering in making this decision?
ANSWER
Expert Thomas Graham iii's Answer:
Whether or not the conversion makes since depends on your current situation (Age, wages, opinions on tax increases/decreases, etc). The perks to converting would be that you pay taxes now rather than have to pay the taxes at a later date, possibly pay a lesser rate, and to most importantly to have the smallest tax liability. With all this being said, it makes sense to convert if 1) Your income is currently less than you foresee it being in the future, 2) You anticipate that the tax brackets will increase and your tax burden will increase based on the same amount of income in the future, 3) Simplicity in getting your taxes out of the way so you won't have to worry about paying them at a later date.
